physically or mentally incapable of self-care and
who has the same principal place of abode as you for more than half of the
year. In addition, your qualifying individual can be any dependent who is
physically or mentally incapable of self-care, and who has the same
principal place of abode as you for more than half of the year.
For purposes of the child and dependent care
credit, an individual is physically or mentally incapable of
self-care if, as a result of a physical or mental defect, the
individual is incapable of caring for his or her hygiene or
nutritional needs and whom requires the full-time attention of another
person for the individual's safety or safety of others. A noncustodial parent may not treat a child as a
qualifying individual for purposes of the child and dependent
care credit, even if the noncustodial parent may claim an exemption for the
child.
You must exercise due diligence in claiming the
child and dependent care credit. If you do not provide information regarding the
care provider, you may still be eligible for the child and
dependent care credit if you can show that you exercised due diligence in
attempting to provide the required information.
Estimated Taxes
Estimated tax is the method used to pay tax on income
that is not subject to withholding. This includes income from
self-employment, interest, dividends, alimony, rent, gains from the sale of
assets, prizes and awards. You also may have to pay estimated tax if the
amount of income tax being withheld from your salary, pension, or other
income is not enough.
Estimated tax is used to pay income tax and
self-employment tax, as well as other taxes and amounts reported on your tax
return. If you do not pay enough through withholding or estimated tax
payments, you may be charged a penalty. If you do not pay enough by the due
date of each payment period you may be charged a penalty even if you are due
a refund when you file your tax return.
If
you are filing as a sole proprietor, partner, S corporation shareholder
and/or a self-employed individual, you should use Form 1040-ES, Estimated
Tax for Individuals (PDF), to figure and pay your estimated tax.If you are filing as a corporation
you should use Form 1120-W, Estimated Tax for Corporations (PDF), to figure
the estimated tax. You must deposit the payments. If you are filing as a sole proprietor,
partner, S corporation shareholder, and/or a self-employed individual, you
generally have to make estimated tax payments if you expect to owe tax of
$1,000 or more when you file your return.If you are filing as a corporation you
generally have to make estimated tax payments for your corporation if you
expect it to owe tax of $500 or more when you file its return.If you had a tax liability for the prior
year, you may have to pay estimated tax for the current year.
If you receive salaries and wages, you can avoid
having to pay estimated tax by asking your employer to withhold more tax
from your earnings. To do this, file a new Form W-4with your employer. There is a special line on Form W-4 for you
to enter the additional amount you want your employer to withhold.You do not have to pay estimated tax for
the current year if you had
no tax liability for the prior year, you
were a U.S. citizen or resident for the whole year, your
prior tax year covered a 12 month period,
you had no tax liability for the prior year if your
total tax was zero or you did not have to file an income tax return.
Estimated tax requirements are different for farmers and fishermen.
